IRS examiners use Audit Techniques Guides (ATGs) to prepare for audits — and so can small business owners. Many ATGs target specific industries, such as construction. Others address issues that frequently arise in audits, such as executive compensation and fringe benefits. These publications can provide valuable insights into issues that might surface if your business is audited. What do ATGs cover? The IRS compiles information obtained from past examinations of taxpayers and publishes its findings in ATGs. Typically, these publications explain: The nature of the industry or issue, Accounting methods commonly used in an industry, Relevant audit examination techniques, Common and industry-specific compliance issues, Business practices, Industry terminology, and Sample interview questions. By using a specific ATG, an examiner may, for example, be able to reconcile discrepancies...